How does the concept of utility of wealth capture the idea that pain of loss exceeds the pleasure of gain?
What will be an ideal response?
The utility of wealth has diminishing marginal utility. Diminishing marginal utility means that the decrease in utility from a dollar decrease in wealth, that is, the pain of loss, is greater than the increase in utility from a dollar increase in wealth, that is, the pleasure of gain.
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It is estimated that, on the average and without taking account of skill differentials, union wages are
A) equal to nonunion wages. B) less than nonunion wages. C) 66 percent higher than nonunion wages. D) 100 percent higher than nonunion wages. E) 30 percent higher than nonunion wages.
If a firm produces 10 units, TC=$100 . When the firm increase its output to 15 units, TC= $150 . The firm's AVC equal to
a. $5 b. $10 c. $50 d. $100
Which of the following statements are false?
A. If the CPI has gone up since the base year, inflation has occurred. B. Inflation generally occurs before wars. C. A period of great price stability since World War II was 1958 to 1964. D. Inflationary recessions first occurred in the 1970s.
Suppose that buyers assume that there is a 30% chance of getting a plum, and 8 of 10 cars in the used car market are lemons. Is this an equilibrium?
What will be an ideal response?